One97 Communications has appointed S R Batliboi & Co. (SRBC) as the statutory auditor for their FinTech subsidiary, Paytm with effect from August 7, 2023. The announcement comes after PWC India stepped down as the statutory auditor of Paytm on Monday.
In the BSE exchange filing, the parent company of Paytm stated, “We wish to inform you that M/S Price Waterhouse Chartered Accountants LLP, statutory auditors of material subsidiary i.e. Paytm Payments Services Limited (PPSL) have resigned with effect from August 07, 2023.
The Statutory Auditors have not raised any concerns or issues. The Board of Directors of PPSL have noted their resignation and placed on record its appreciation to M/s Price Waterhouse Chartered Accountants LLP for their contribution. Further, S.R. Batliboi & Associates LLP has been appointed as the statutory auditor of PPSL with effect from August 07, 2023,”
Paytm also posted on X.com (rebranded version of Twitter), ”Paytm Our wholly-owned subsidiary Paytm Payments Services has appointed S.R. Batliboi & Associates as its auditor. PPSL being a material subsidiary, this is aligned with OCL’s appointment of the same firm as its auditor.”
“We understand that there has been a change of auditors at the holding company level. Consequently, keeping in mind your understandable practice to align the auditor of PPSL, being a material subsidiary, with the auditor of the holding company in order to bring in synergies and maintain consistency in the audit process of the Group, we hereby tender our resignation as the Statutory Auditors of PPSL,” stated PWC in their resignation letter to the Paytm.
The change has been a topic of discussion since March 2023, when Paytm signalled its plan to appoint SRBC Associates as the new auditors once the five-year term with PwC concluded.
In related news, the Paytm founder and CEO Vijay Shekhar Sharma, who was reappointed as part-time chairman in May 2023, is set to become the largest shareholder in Paytm with an agreement of a 10.30 per cent stake in Paytm acquired from Antfin (Netherlands) Holdings BV, in an unlisted ‘no-cash deal’.